MGIC's Overdues Rise after Storms
MGIC Investment Corp. reported a decline in credit losses last year, despite estimating that Hurricanes Katrina, Rita and Wilma added 5,300 delinquencies to the company's portfolio.
MGIC, which had $170 billion of insurance-in-force at the end of last year, said 4.52% of its insured loans were delinquent at year-end, up from 3.99% at the end of 2004. That excludes MGIC's bulk insurance portfolio. When the bulk portfolio is included, the delinquency rate rises to 6.58% at the end of last year, up from $6.05% a year earlier.
The company's total portfolio of delinquent loans rose to 85,788 at the end of last year.
However, MGIC said that fourth-quarter losses were down compared to a year earlier. MGIC reported $171.6 million of losses in the fourth quarter, compared to $186.5 million for the same period in 2004.
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